Roth IRA

For some people, a Roth IRA presents a better retirement plan than a traditional IRA. You cannot deduct contributions on current tax returns with a Roth IRA. But your interest earnings are 100% tax free upon withdrawal, as opposed to tax deferred.

Another plus is the ability to withdraw principal balances without penalty. While this would diminish the money-making magic of compound interest, it provides a safety net if you need funds.